Written Answers Nos. 393-428
393. Deputy Sean Sherlock asked the Minister for Finance the amount his Department has spent on advertising on social media in 2021 and to date in 2022; the amount spent per platform; and the campaigns per platform, in tabular form. [43374/22]
Amharc ar fhreagraThe amount the Department of Finance has spent on advertising on social media during 2021 and 2022 is detailed below.
DFIN Advertising on Social Media Spend - 2022 & 2021
|
Division |
2022 |
2021 |
|
*Commission on Taxation & Welfare |
Nil |
*€24,419.15 |
|
**FSD |
Nil |
Nil |
|
***Banking/FSPO |
Nil |
Nil |
*Commission on Taxation: This amount relates to online advertising spend rather than specifically social media advertising and it may also include some traditional forms of advertising. It is not currently possible to provide an exact breakdown between traditional, online and social media in relation to this expenditure amount. However, a total of €4,442 was spent across LinkedIn and Twitter as part of the Public Consultation and Extension campaign carried out by the Commission on Taxation and Welfare.
**There was no direct spending on advertising on social media platforms for the Financial Services Division. However, €4,879 was spent in 2021 on a consultancy contract with Daniel J Edelman. The consultancy was for specialist advice and support on the use of social media in international contexts for the international launches of the Government of Ireland’s Ireland for Finance strategy.
***Banking division had no direct spending on social media in either 2022 or 2021. However, the Department contributed €150,000 to help fund the Competition and Consumer Protection Commission (CCPC) bank switching campaign “Breaking Up with Your Bank” in August 2022. The CCPC is managing how the advertising funds are spent across platforms in August 2022.
394. Deputy Jim O'Callaghan asked the Minister for Finance if consideration will be given to providing refundable tax credits to owner-occupiers whose buildings have been affected by defective workmanship, in response to the report on defective homes; and if he will make a statement on the matter. [43387/22]
Amharc ar fhreagra411. Deputy Jim O'Callaghan asked the Minister for Finance if tax credits will be introduced for persons who are required to spend money remediating defects in apartments constructed prior to 1990; and if he will make a statement on the matter. [43970/22]
Amharc ar fhreagraI propose to take Questions Nos. 394 and 411 together.
The Working Group to Examine Defects in Housing was published on 28 July last.
It is clear from the report that the process of remediation is likely to take many years to complete and that the estimated potential costs of such remediation are very substantial and that appropriate actions will need to be prioritised.
The report sets out a number of funding options of which taxation measures are but one approach. It is also clear from the report that further work needs to be undertaken to assess the relative merits of each funding option.
Against this background, it would be premature at this point to focus in on the tax-based options mentioned by the Deputy.
395. Deputy Violet-Anne Wynne asked the Minister for Finance the estimated cost of extending the VAT rate reduction for the tourism and hospitality sectors until 31 August 2023. [43406/22]
Amharc ar fhreagraI am informed by Revenue that a tentative estimate of the cost of extending the 9% VAT rate reduction for the tourism and hospitality sectors from 1 March 2023 until 31 August 2023 would be in the region of €210m. This estimate is liable to change due to the uncertainty surrounding price and demand effects at present.
396. Deputy Eoin Ó Broin asked the Minister for Finance the reason that the VAT rate for concrete is lower than that for building products generally. [43453/22]
Amharc ar fhreagraI am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the VAT Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the VAT Directive, in respect of which Member States may apply either one or two reduced rates of VAT. Ireland currently operates two reduced rates of VAT, 13.5% and 9%, as permitted by the VAT Directive.
Building materials are not included in the categories of goods and services on which the EU VAT Directive allows a lower rate of VAT or an exemption to be applied, and so they are liable to VAT at the standard rate. By way of special derogation from the general rule though, Ireland is permitted to continue its long-standing practice of applying a reduced rate, currently 13.5%, to the supply of ready-to-pour concrete and certain concrete blocks but there are restrictions on this derogation, including that the rate cannot be reduced below 12%. It is not possible under EU VAT law to extend the scope of the derogation to other building materials.
The Deputy will be aware that while builders and developers charge VAT on construction services at the reduced 13.5% rate, they are generally entitled to full recovery of any VAT incurred in the development of that property, including VAT at the standard rate on building materials used. Thus, even were it possible, a reduction in the rate of VAT on building materials would not reduce building costs.
397. Deputy Paul Murphy asked the Minister for Finance if there is a legal requirement or a way to ensure that in cases in which persons who are switching car insurance providers, that the company a customer has been using must provide a no claims bonus certificate in full to the new insurance supplier; and, if not, if he will consider making this a legal requirement. [43466/22]
Amharc ar fhreagraAt the outset, I wish to point out that with respect to the provision of no claims bonus certificates, details of a no claims bonus must be issued with the motor renewal notice to the consumer, in writing, not less than 20 working days prior to renewal. This is a legal requirement under the Non-Life (Provision of Information) (Renewal of Policy of Insurance) (Amendment) Regulations 2018 (S.I. No. 77 of 2018). These Regulations amended the Non-Life Insurance (Provision of Information) Regulations 2007 (S.I No. 74 of 2007).
Separately, my officials have contacted Insurance Ireland, the representative body for insurance providers in this country, in relation to the Deputy’s query. More generally, it has indicated that the administration of no claims bonuses is a matter for each individual insurance provider. The amount of discount offered, and the terms and conditions attached to same, will vary according to the consumer, policy, the nature of the risk and the provider. As such it is important to note that neither I, nor the Central Bank of Ireland, can direct the pricing or provision of insurance products, as this is a commercial matter which individual companies assess on a case-by-case basis. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive).
Where a consumer feels that they are being treated unfairly by an insurance provider, they have the option of making a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO is a statutory official who acts as an independent arbiter of disputes which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000.
Finally, it is also worth noting that Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in obtaining insurance. This can be accessed by calling 01-676-1820, or by email at feedback@insuranceireland.eu.
398. Deputy Thomas Gould asked the Minister for Finance if a person is eligible to apply for the help to buy scheme as a single applicant if they share tax credits with a spouse. [43492/22]
Amharc ar fhreagraThe Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with a deposit they need to buy or build a new house or apartment. The incentive gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation.
Section 477C of the Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the HTB scheme. A claimant under the scheme must make an application confirming he or she meets various conditions specified in the section. The main conditions include that the claimant is a first-time purchaser, that the claimant has a qualifying loan on the property in question and that the claimant has completed a tax return form and is tax compliant for each of the tax years for which a claim is being made. Also, the new property must be occupied as the sole or main residence of a first-time purchaser.
The definition of “first-time purchaser” for the purposes of the scheme is an individual who, at the time of making a claim under the scheme, has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf, a dwelling.
An application for the HTB scheme should be made via Revenue’s online platforms (MyAccount or ROS), and an application may be submitted by an individual or a group. A group is made up of one or more persons, including couples in a marriage or civil partnership. In order for a group claim to be successful, all members of the group must satisfy the conditions of the scheme – including the first-time purchaser condition, and all parties to the contract must be included in the HTB application.
The sharing of tax credits with a spouse in cases where spouses are jointly or separately assessed, will not affect a person’s eligibility for HTB, on the basis that all conditions of the HTB scheme are met by the applicant. However, the individual HTB applicant is only entitled to claim back any tax that is actually paid by him or her, not what is paid by their spouse.
I am advised that Revenue’s Tax and Duty Manual Part 15-01-46 outlines further guidance on the conditions and operation of the HTB scheme.
399. Deputy Fergus O'Dowd asked the Minister for Finance the details on the total amounts of moneys awarded to Louth County Council by his Department in each of the years 2016 to 2021 and to date in 2022, in tabular form; if he will seek details on the total moneys drawn down and spent by Louth County Council over the same years, in tabular form, and, if not spent, the total moneys that were returned to his Department over the same years, respectively, in tabular form; and if he will make a statement on the matter. [43519/22]
Amharc ar fhreagraI wish to advise the Deputy that there were no amounts awarded to Louth County Council by my Department in the period 2016 to 2021 and to date in 2022.
400. Deputy Jim O'Callaghan asked the Minister for Finance if he will consider introducing tax relief for those who have full-time jobs but who also wish to work part-time in hospitality in order to alleviate the problem in attracting staff into the hospitality sector; and if he will make a statement on the matter. [43579/22]
Amharc ar fhreagraI understand the rationale behind the Deputy's question. However, the hospitality sector is not the only sector that is currently facing recruitment challenges in what is thankfully a very buoyant labour market. As such, it would in my view be potentially inequitable to single out one sector for particular treatment through the personal tax system.
401. Deputy Eoin Ó Broin asked the Minister for Finance the number of applications for the help-to-buy scheme; the number of approvals for the scheme; the drawdowns for the scheme for each year since the scheme was launched, with monetary amounts for each category, in tabular form. [43634/22]
Amharc ar fhreagraI am advised by Revenue that annual statistics on the Help to Buy (HTB) scheme are published on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/htb/htb-yearly.aspx. In addition, monthly statistics are also available and published at www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/htb/htb-monthly.aspx.
Applications for HTB may be made on a provisional basis as first time buyers will want to have certainty as to their entitlements in advance of commencing the purchase of a property. An application will only progress to the final “claim” stage if and when the applicant decides to purchase a property that is eligible for the scheme. The number of Applications (excluding cancelled applications), the number of Claims reaching Claim Stage, and the number of Claims that reached Claim Stage and were approved, are set out in the following table, as well as the cost of total Claims and Approved Claims in each year.
|
- |
Number of Applications |
Number of Claims (Approved and Pending) |
Number of Approved Claims |
Value of Approved and Pending Claims (€m) |
Value of Approved Claims (€m) |
|
2017 |
7,945 |
5,321 |
5,190 |
75.7 |
74.8 |
|
2018 |
7,988 |
5,006 |
4,960 |
74.1 |
73.7 |
|
2019 |
10,847 |
6,645 |
6,569 |
101.3 |
100.6 |
|
2020 |
13,242 |
6,155 |
6,085 |
123.2 |
122.4 |
|
2021 |
21,807 |
7,755 |
7,669 |
193.7 |
192.4 |
|
2022 |
24,923 |
4,791 |
4,296 |
125.5 |
113.3 |
|
Total |
86,752 |
35,673 |
34,769 |
693.5 |
677.2 |
402. Deputy Michael Healy-Rae asked the Minister for Finance if there are plans to change the VAT rate for green diesel (details supplied); and if he will make a statement on the matter. [43660/22]
Amharc ar fhreagraI am advised by Revenue that the VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate of VAT. Within its rates structure, the EU VAT Directive also allows for historic VAT treatment to be maintained under certain conditions on certain goods and services not provided for in Annex III. Currently Ireland has a standard VAT rate of 23% and two reduced rates of 13.5% and 9%. Ireland also holds a number of derogations, under which is it permitted to retain some historic VAT arrangements, under strict conditions.
Ireland has retained its historic application of one of the reduced rates of VAT, 13.5%, to the supply of marked gas oil (commonly known as green diesel). This is a ‘parked rate’, governed by Article 118 of the VAT Directive, and standstill provisions from 1991 mean that this reduced rate can be maintained but it cannot be reduced below 12%.
The Deputy may be interested to know that VAT-registered businesses, including fishers, farmers and contractors, are entitled to recover the cost of VAT on the purchase of green diesel, used in the course of their business, as is the case with most business costs.
Fishers and farmers who decide to remain unregistered for VAT can avail of the Flat-Rate Scheme. The Scheme sets out a percentage amount, known as the flat-rate addition, which unregistered fishers and farmers apply to their prices when selling goods and services to VAT-registered businesses. The VAT-registered business treats the flat-rate amount as a normal business input in its periodic VAT return, claiming input credit for the flat-rate amount paid to the flat-rate fisher or farmer. In this way, fishers and farmers are compensated for the VAT incurred by them on their input costs including green diesel, and this simplification reduces the administrative burden for them as there is no need to register for VAT to recover VAT incurred on their inputs.
403. Deputy Seán Haughey asked the Minister for Finance if he will introduce a tax relief for the purchase of spectacles and glasses, separate to the existing PRSI scheme; and if he will make a statement on the matter. [43729/22]
Amharc ar fhreagraThe position is that tax relief in respect of health expenses is allowed in accordance with the provisions of section 469 of the Taxes Consolidation Act 1997. In order to qualify for relief an individual must show that he or she has incurred "health expenses" for the provision of "health care".
For the purposes of section 469 "health care" is the prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability.
However, routine ophthalmic treatment is specifically excluded from "health care" for the purposes of tax relief. Section 469(1) describes "routine ophthalmic treatment" as sight testing and advice as to the use of spectacles or contact lenses, and the provision and repairing of spectacles or contact lenses.
I have no current plans to broaden the tax relief for health expenses or to introduce a specific tax relief for the purchase of spectacles and glasses.
404. Deputy Sean Sherlock asked the Minister for Finance if he will examine a matter for a person (details supplied) regarding benefit-in-kind. [43744/22]
Amharc ar fhreagraI am advised by Revenue that the matter referred to relates to the application of the Benefit-In-Kind (BIK) concessionary arrangements in respect of employer-provided vehicles during the period of restrictions due to the Covid-19 pandemic.
Calculation of the BIK charge on the provision of a car to an employee
Section 121 of the Taxes Consolidation Act 1997, provides that an employee is chargeable to tax on the benefit arising where, by reason of his or her employment, a car is made available (without a transfer of ownership) to him or her and the car is, in the tax year, available either for that individual’s private use or to his or her family or household.
The taxable benefit is calculated based on the cash equivalent of the use of the car. This cash equivalent is calculated as a percentage of the original market value of the car. The percentage applied varies according to the distance over which the car is used for business purposes.
BIK is applied to 30% of the original market value of a car. However, this 30% may be reduced (to 24%, 18%, 12% or 6%) depending on the annual business kilometres travelled. The following table shows the applicable rates.
|
Business Kilometres - Lower Limit |
Business Kilometres - Upper Limit |
Percentage of Original Market Value (per cent) |
|
Nil |
24,000 |
30 |
|
24,001 |
32,000 |
24 |
|
32,001 |
40,000 |
18 |
|
40,001 |
48,000 |
12 |
|
48,001 |
-- |
6 |
If the car provided is an electric vehicle, there may be a full exemption or partial relief from BIK available.
Absence from work
As the annual business mileage is a key factor in determining the rate used in calculating the BIK charge (i.e. using 30%, 24%, 18%,12%, 6%), where an employee is not working, for example, due to maternity leave, this may have a bearing on the BIK charge due.
Concessionary treatment COVID-19 circumstances
Due to the unprecedented circumstances of the COVID-19 pandemic, certain concessional treatment was permitted by Revenue in relation to the operation of BIK on employer-provided vehicles.
This concession was published on Revenue’s website in March 2020. Thus, for the years of assessment 2020 and 2021, where an employee was in receipt of a vehicle (car or van) provided by his or her employer, the following may apply:
(a) Employer Takes Back Possession of the Vehicle
Where an employer takes back possession of the vehicle and an employee has no access to the vehicle, no BIK shall apply for the period.
(b) Employer Prohibits Use
Where an employee retains possession of a vehicle, but the employer prohibits the use of the vehicle, no BIK shall apply if the vehicle is not used for private use.
(c) Employer Allows Private Use
Where an employee is not prohibited from using a vehicle, but limited or reduced business mileage (if any) is undertaken during the period of the COVID-19 crisis, the amount of business mileage travelled in January 2020 may be used as a base month for the purposes of calculating the amount of BIK due. Personal use of the vehicle must be limited in this scenario and appropriate records should be kept, e.g. business mileage travelled in January 2020, amount of private use, photographic evidence of odometer, etc.
Where an employee continues to undertake business travel as usual in an employer-provided vehicle, the usual BIK rules will apply.
For 2022, the measure was only applicable for the period during which public health guidance required employees to work from home, therefore the concession ceased to apply from 1 June 2022.
It is understood from the information provided to Revenue, that the person concerned had the use of the employer provided car during the period for which the she was absent from work in 2020, due to maternity leave. In these circumstances the situations outlined in (a) and (b) above do not apply. However, the concessional treatment outlined in (c) may apply for the relevant period in 2020 up to when she commenced her maternity leave.
Therefore, the amount of business mileage travelled in January 2020 may be used as a base month for the purposes of calculating the amount of business mileage for the period in 2020 in respect of which the employee was working but had movements restricted due to COVID-19. As stated above, it is not possible to deem business mileage for months an employee is on leave. Thus, in respect of this employee, if the total amount of business mileage for 2020 was less than 24,001 kms, the standard 30% rate will apply to the calculation of BIK.
Revenue can be contacted via the National Helpline (01 738 3636) or online via MyEnquiries should further clarification be required.
Further information on the taxation of employer-provided vehicles, is included in Tax and Duty Manual Part 05- 01-01b, which is available on the Revenue website.
405. Deputy Holly Cairns asked the Minister for Finance the steps he is taking to address the rates of interests charged by moneylending companies. [43795/22]
Amharc ar fhreagraThe Consumer Credit (Amendment) Bill 2022 was signed into law on 29 June 2022.
The main purpose of the legislation is to cap the interest which high cost credit providers can charge borrowers. The Bill will also:
- ban cash loans with terms longer than 1 year;
- ban collection charges on loans;
- extend the licence period from 1 year to 5 years;
- remove the requirement for high cost credit providers to register in each District Court area;
- introduce a choice for consumers between a paper or online repayment record; and
- replace the term ‘moneylender’ with ‘high cost credit provider’.
In making the regulations, the Minister must also adhere to the following parameters:
- in relation to cash loans under a high cost credit agreement.
- the maximum rate of simple interest chargeable per week can only be set at a rate less than or equal to one per cent, and
- the maximum rate of simple interest chargeable per year can only be set at a rate less than or equal to 48 per cent
- in respect of a running account under a high cost credit agreement, the maximum rate of monthly nominal interest can only be set at a rate less than or equate to 2.83 per cent. A running account operates similarly to a tied credit card and is a product sometimes offered by catalogue companies.
These changes will assist people and families who have difficulty obtaining credit from other lenders.
Consumers of licensed high cost credit provider are protected by a range of provisions that high cost credit providers must adhere to.
For example high cost credit providers are required to undertake a creditworthiness assessment before entering into a moneylending agreement with a consumer. High cost credit providers must ensure that their lending policies and practices are responsible. This means seeking to ensure that each borrower can afford to repay a loan without suffering hardship and considering the affordability of the loan to the consumer.
There are important protections provided in the Consumer Credit Act 1995 whereby licensed high cost credit providers are prohibited from applying additional charges to a moneylending agreement.
High cost credit providers are also prohibited from applying any additional charges in the event of a default in the payments due under the agreement (i.e. the total amount repayable by a consumer is limited to the amount specified in the moneylending agreement (the only exception being the awarding of legal costs by a Court of law).
The Central Bank will examine the effectiveness of the interest rate caps and the Government will consider any recommendations they make in the future.
406. Deputy Holly Cairns asked the Minister for Finance the steps he is taking to ensure individuals and families affected by the cost-of-living crisis are facilitated in engaging with licensed and regulated bodies for the provision of loans and credit. [43796/22]
Amharc ar fhreagraThe supervision of regulated financial service providers is a matter for the Central Bank of Ireland. In that context, the Central Bank has indicated that it expects all regulated firms, including those involved in the provision of credit, to take a consumer-focused approach and act in their customers’ best interests at all times.
Provision 2.1 of the Consumer Protection Code 2012 (the Code) states that a regulated entity must ensure that in all its dealings with customers and within the context of its authorisation, it acts honestly, fairly and professionally in the best interests of its customers and the integrity of the market.
In addition, the Code imposes ‘Knowing the Consumer and Suitability’ requirements on regulated entities. Under these requirements regulated entities are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower. The Code specifies that the affordability assessment must include consideration of the information gathered on the borrower’s personal circumstances and financial situation.
However, it should be noted that the decision to grant or refuse credit remains a commercial decision for regulated entities, within the parameters of the regulatory framework.
407. Deputy Bríd Smith asked the Minister for Finance if he will examine the impact of changes in the Finance Act 2022 in relation to section 31E of the Stamp Duties Consolidation Act 1999 (as amended), which introduced an increased rate of 10% stamp duty on multiple purchases of housing units; the impact of this change on home reversion products which seek to help elderly persons remain in their home in situations in which they have fallen into mortgage arrears and so on; if he will consider amending the Act to allow for persons to continue to avail of such help and such products; and if he will make a statement on the matter. [43837/22]
Amharc ar fhreagraIn 2021, I introduced a higher 10% rate of stamp duty on multiple purchases of residential properties. The rate was introduced by Financial Resolution on 19 May 2021 and is provided for by section 31E of the Stamp Duties Consolidation Act 1999. It applies where a person buys 10 or more residential properties, excluding apartments, in any 12-month period. The background to the introduction of the measure was the purchase by institutional investors of all, or a significant proportion of, residential housing estates, thus denying first-time buyers an opportunity to purchase a home. The 10% rate is intended to provide a significant disincentive to this practice.
To ensure that the higher rate of duty does not have an adverse impact on the delivery of social and affordable housing in the State, section 31E contains a specific exemption from the 10% rate of duty for residential units that are leased to a local authority for onward leasing to a household that qualifies for social housing support. The relief is intended to apply in respect of residential units acquired under the ‘mortgage-to-rent’ scheme. I have also introduced two specific repayment schemes in relation to section 31E, which are provided for by sections 83E and section 83F of the Stamp Duties Consolidation Act 1999.
Section 83E, which was introduced by the Finance (Covid-19 and Miscellaneous Provisions) Act 2021, provides for a partial repayment of stamp duty paid at the higher 10% rate where, within 2 years of acquisition, a property is leased to a local authority or an approved housing body for the purpose of social housing. Section 83F, which was introduced by the Finance (Covid-19 and Miscellaneous Provisions) Act 2022, provides for a partial repayment where, within 6 months of acquisition, a property is designated as a “cost rental dwelling”. In the case of both schemes, the amount to be repaid is the difference between the amount of stamp duty paid at the higher 10% rate and the amount of duty that would have been payable had the standard rate applied.
Home reversion is a form of equity release product. In essence, such products involve the Home Reversion Firm buying a share of a person’s home in exchange for a lump sum payment.
They are specialised products which may suit the personal circumstances of certain cohorts of home owners. In particular they may be suitable products for a person who owns their home but do not have sufficient income or other means to make repayments on a standard re-mortgage or other type of loan.
Home reversion products are defined in the Central Bank Act 1997 and any firm seeking to offer such products must be authorised by the Central Bank to do so.
Currently, there is no specific exemption or repayment scheme available covering home reversion products in respect of section 31E of SDCA 1999.
408. Deputy Brendan Griffin asked the Minister for Finance if he will address the case of a person (details supplied) regarding the rent a room relief; and if he will make a statement on the matter. [43925/22]
Amharc ar fhreagraThe Rent-a-Room scheme was introduced in Finance Act 2001 as an incentive to encourage individuals to let rooms in their principal private residence as residential accommodation in order to bring about an increase in the availability of rental accommodation.
In accordance with section 216A of the Taxes Consolidation Act 1997, the Rent-a-Room scheme provides that an individual who lets a room or rooms in their sole or main residence within the State as residential accommodation may be exempt from income tax, PRSI and USC in respect of income from the letting where the aggregate of the gross rents and any sums for meals or other services supplied with the letting does not exceed the threshold for the year in question, which is €14,000 for 2022. Although the income is exempt it must be included in the individual’s tax return for the year in question.
According to Revenue's Tax and Duty manual on the relief (available at www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-32.pdf), in general, an individual’s sole or main residence is that individual’s home for the greater part of the time and where friends and correspondents would expect to find said individual. A person is considered to be resident in Ireland for tax purposes if they are present in Ireland for 183 days or more in a tax year or 280 days or more in total, taking the current tax year plus the preceding tax year together. As such, Irish citizens who are not tax resident in Ireland would not currently be entitled to claim Rent-a-Room relief because a dwelling within the State would not be considered to be their sole or main residence during the tax year.
I have no plans at present to change the Rent-a-Room scheme as suggested. As the Deputy will appreciate, decisions regarding tax incentives and reliefs are normally made in the context of the annual Budget and Finance Bill process. Such decisions must have regard to the sound management of the public finances and my Department's Tax Expenditure Guidelines. These guidelines make clear that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures, where a tax-based incentive is more efficient than a direct expenditure intervention.
409. Deputy Brendan Griffin asked the Minister for Finance if the rebate for the disabled drivers and passengers scheme will be increased (details supplied); and if he will make a statement on the matter. [43928/22]
Amharc ar fhreagraThe Disabled Drivers and Disabled Passengers Scheme provides relief from VRT and VAT on an adapted car, as well as an exemption from motor tax and an annual fuel grant.
To qualify for the Scheme an applicant must be in possession of a Primary Medical Certificate. The PMC is issued by the relevant Senior Medical Officer in the HSE, or failing that an appeal may be made to the Disabled Drivers Medical Board of Appeal. The Minister has no role in relation to the granting or refusal of PMCs and the HSE and the Medical Board of Appeal must be independent in their clinical determinations.
To qualify for a Primary Medical Certificate an applicant must be permanently and severely disabled, and satisfy at least one of six medical criteria, in order to obtain a Primary Medical Certificate.
The Minister gave a commitment to the House that a comprehensive review of the scheme, to include a broader review of mobility supports for persons with disabilities, would be undertaken.
In this context he has been working with Roderic O’Gorman, Minister for Children, Equality, Disability, Integration and Youth. They are both agreed that the review should be brought within a wider review under the auspices of the National Disability Inclusion Strategy, to examine transport supports encompassing all Government funded transport and mobility schemes for people with disabilities.
I believe this is the most appropriate forum to meet mutual objectives in respect of transport solutions/mobility supports for those with a disability.
The NDIS working group, chaired by Minister Anne Rabbitte, with officials from both this Department and the Department of Children, Equality, Disability, Integration and Youth as well as others, held its first meeting on the 26th January 2022. A stock-taking exercise of existing transport and mobility schemes currently supporting people with disabilities is ongoing. The next meeting of the group is 6th September 2022.
The Department of Finance established an information-gathering group to capture the experiences, expertise and perspectives of former DDMBA members and Principal Medical Officers (PMOs) in the HSE. A range of outputs have been produced, providing information on the DDS scheme as inputs into the broader review.
Finance officials will continue to work closely with officials from the Department of Children, Equality, Disability, Integration and Youth to progress the wider review and on foot of that the NDIS working group will bring forward proposals for consideration.
The Minister cannot comment on any potential changes to the scheme in advance of these proposals.
410. Deputy Niamh Smyth asked the Minister for Finance the reason that a bag of smokeless coal has doubled in price (details supplied); and if he will make a statement on the matter. [43932/22]
Amharc ar fhreagraThe price of coal is determined by a number of factors such as global market dynamics, costs of labour, exchange rates, taxation as well as wholesale and retail pricing policy practices which may include additional pricing to cover transport and distribution costs.
Coal supplies in the State are subject to Solid Fuel Carbon Tax (SFCT) and Value-Added Tax (VAT). SFCT is an excise duty and is commonly referred to as carbon tax. SFCT applies at different rates to coal, peat, and peat products when they are first supplied in the State. Smokeless coal, low smoke coal and smoky coal all attract the same rate of SFCT, currently €107.98 per tonne. Current SFCT rates per tonne are summarised in the table below along with SFCT rates in place this time last year.
|
Description of Solid Fuel |
SFCT from I May, 2021 - 30 April, 2022 |
SFCT from 1 May, 2022 |
|
Coal |
€88.23 |
€107.98 |
|
Peat Briquettes |
€61.42 |
€75.17 |
|
Milled Peat |
€30.44 |
€37.25 |
|
Other Peat |
€45.65 |
€55.87 |
In relation to Value-Added Tax (VAT), the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. Ireland currently operates two reduced rates of VAT, 13.5% and 9%, as permitted by the Directive.
The distribution and sale of coal to a consumer in the State is subject to normal VAT rules and the Irish supplier is liable to account for VAT, at the reduced rate of 13.5%, on the supply. The consideration for a supply of goods is defined in EU VAT law and consists of everything which the supplier is entitled to receive in return for the goods supplied including taxes, duties, levies and charges, excluding the VAT itself. Therefore, VAT is chargeable on top of the SFCT applicable to the supply of coal.
The table below sets out the SFCT and VAT costs, at current SFCT rates, on a 40kg bag of smokeless coal retailing at €40. The table also sets out the SFCT and VAT that would have applied this time last year on the same pre-tax price.
|
40kg bag of coal |
Pre-tax price |
SFCT |
VAT at 13.5% |
Total Taxes |
Retail price |
|
At current SFCT rate (€107.98/tonne) |
€30.92 |
€4.32 |
€4.76 |
€9.08 |
€40.00 |
|
At SFCT rate in place Sept 2021 (€88.23/tonne) |
€30.92 |
€3.53 |
€4.65 |
€8.18 |
€39.10 |
|
Difference |
€0.00 |
€0.79 |
€0.11 |
€0.90 |
€0.90 |
The figures above illustrate that the increase in the SFCT rate since this time last year has resulted in 90 cents of an increase in the total tax cost of a 40 kg bag of coal retailing at €40. The more significant price increases that the Deputy has referred to are not attributable to taxation.
My advice to consumers is to shop around and if possible use price comparison websites to ensure they receive the best value for money.
412. Deputy Paul Murphy asked the Minister for Finance the action that is being taken to alleviate the pressure in terms of high insurance costs for early childhood care and education scheme childcare providers. [43973/22]
Amharc ar fhreagraAt the outset it is important to note that neither I, nor the Central Bank of Ireland can direct the pricing or provision of insurance products, as this is a commercial matter which individual companies assess on a case-by-case basis. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so.
Nonetheless, this Government recognises the concerns felt by many groups, including the childcare sector, regarding the cost and availability of insurance, and has therefore prioritised insurance reform. As the Deputy may be aware, in March 2022 the Government published the second Action Plan for Insurance Reform Implementation Report, which shows that work is progressing well, with 80 per cent of the actions contained in the Action Plan already being delivered.
The Office to Promote Competition in the Insurance Market, chaired by Minister of State Fleming, aims to help expand the risk appetite of existing insurers and explore opportunities for new market entrants in order to increase the availability of insurance. The Office is working with IDA Ireland to help leverage the ongoing insurance reforms with the aim of targeting new entrants to the Irish market or encouraging current incumbents to expand into undeserved areas. I understand that a major international insurance company has recently expanded into the playcentre area and has underwritten a group scheme in this sector. This is a very positive development and may lead to other providers similarly expanding their product lines. In addition, Cabinet recently approved proposals to overhaul the duty of care to address issues associated with ‘slips, trips and falls’, which predominate in footfall-heavy sectors such as childcare. I am hopeful that these developments will, by building upon the momentum of the insurance reform agenda, have further positive impacts on the insurance market.
Finally, I wish to assure the Deputy that it is my intention to work with my Government colleagues to ensure that implementation of the remaining elements of the Action Plan can have a positive impact on the affordability and availability of insurance across all sectors in the economy, including the childcare sector.
413. Deputy Michael Healy-Rae asked the Minister for Finance if he will ensure that no registration taxation changes on vehicles will be implemented in budget 2023; and if he will make a statement on the matter. [43980/22]
Amharc ar fhreagraAs the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
414. Deputy Noel Grealish asked the Minister for Finance the current status of the disabled drivers medical board of appeal; if a new board has been appointed; if so, if the board has commenced hearing the backlog of appeals; and if he will make a statement on the matter. [43994/22]
Amharc ar fhreagraThe Disabled Drivers & Disabled Passengers Scheme provides relief from Vehicle Registration Tax and VAT on an adapted car, as well as an exemption from motor tax and an annual fuel grant.
The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain charitable organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal. To qualify for a Primary Medical Certificate an applicant must be permanently and severely disabled, and satisfy at least one of the six medical criteria.
I have no role in relation to the granting or refusal of PMCs and the HSE and the Medical Board of Appeal must be independent in their clinical determinations.
As of 15th August 2022 (latest data available) there are 638 requests for appeal hearings outstanding.
Following the resignation of all members of the previous Disabled Drivers Medical Board of Appeal, effective from 30th November 2021, two Expression of Interest campaigns have been held, seeking suitable candidates for the Board. The Department of Health leads on all actions and tasks with respect to the Expression of Interest Campaigns. Department of Finance officials provide support to the Department of Health in this matter.
The first campaign closed on 29th April. As there were insufficient suitable candidates arising from the first campaign, a second round was issued with a closing date of 5th July 2022. Processes to support the nomination of suitable candidates are nearing completion. Once these processes have been completed the Minister for Finance will then be in a position to appoint any suitable Department of Health nominee to the Board. When the new Board is up and running, it will consider the best way of ensuring outstanding appeals are addressed as quickly as possible.
Requests for appeal hearings can be sent to the DDMBA secretary based in the National Rehabilitation Hospital. New appeal hearing dates will be issued once the new Board is in place. Assessments for the primary medical certificate, by the HSE, are continuing to take place.
415. Deputy Duncan Smith asked the Minister for Finance if a person is liable to pay the pension levy on a private pension; and if he will make a statement on the matter. [44014/22]
Amharc ar fhreagraIt is unclear from the Deputy’s question whether he is referring to the additional superannuation contribution (ASC) or to the pension levy.
The Pension Levy on Private Funds was introduced in the wake of the financial crash and at a time when the economy was in serious difficulties. The intent of the levy was to raise revenue in respect of the generous tax reliefs that those contributing to pension arrangements had benefited from over many years.
The levy on pension funds was provided for in section 125B of the Stamp Duties Consolidation Act 1999 (as inserted by section 4 of "the 2011 Finance (No. 2) Act"). For the years 2011, 2012 and 2013, the rate was 0.60% of the pension scheme assets. For the year 2014, the rate was 0.75% of the assets and for the year 2015, the final year of the levy, the rate was 0.15%. The legislation made no provision for exemption of a particular pension fund.
Under the legislation, the payment of the levy was treated as a necessary expense of a pension scheme and it was a matter for the trustees or insurers to decide when and how the levy should be passed on to scheme members and to what extent, given the particular circumstances of the pension schemes for which they are responsible.
The Deputy may be thinking of the current additional superannuation contribution (ASC) and the previous pension related deduction (PRD), but neither of those charges is applied to private pensions. The ASC is payable by public servants from their pensionable pay in accordance with Part 4 of the Public Service Pay and Pensions Act 2017 with effect from 1 January 2019. The ASC replaced the PRD which was deducted from the remuneration of public servants under the Financial Emergency Measures in the Public Interest Act 2009 (as amended).
417. Deputy Niamh Smyth asked the Minister for Finance if the threshold for capital acquisitions tax is being reviewed ahead of budget 2023. [44159/22]
Amharc ar fhreagraAs the Deputy may be aware, Capital Acquisitions Tax (CAT), including gifts and inheritances, is a tax on unearned wealth. It is recognised that effective taxation of capital is an important tool for addressing income and wealth inequality. Therefore, gift and inheritance taxes, including the efficient use of relief thresholds, are fundamental elements of using our tax code to help create a fairer society.
There have been many increases to the CAT thresholds in recent years. The Group A threshold was raised from €225,000 to €280,000 in Budget 2016, to €310,000 in 2017, to €320,000 in Budget 2019 with a further rise to €335,000 in Budget 2020.
The Group B threshold rose from €30,150 to €32,500 in Budget 2017 and the Group C threshold rose from €15,075 to €16,250 in Budget 2017.
You will appreciate that there would be a significant cost in making further substantial changes to the Group A, Group B and Group C thresholds. For example, recent Revenue estimates indicate that the cost of increasing the CAT A threshold from its current €335,000 to €400,000 would be €47 million, the estimated cost of increasing the CAT B threshold from its current €32,500 to €35,000 would be €8 million, and the estimated cost of increasing the CAT C threshold from its current €16,250 to €19,000 would be €3 million.
The options available for providing increases to CAT thresholds need to be considered in the context of available resources and must be balanced against competing demands.
418. Deputy Catherine Connolly asked the Minister for Finance the actions that have been taken by his Department pursuant to the 2019 judgment by the Court of Justice of the European Union in joined cases (details supplied); the amount of aid money which has been recovered to date as a result of this judgment; and if he will make a statement on the matter. [44200/22]
Amharc ar fhreagraThe EU Commission Decisions of December 2005 and February 2007 found that heavy fuel excise relief granted to Aughinish Alumina Ltd was unlawful State aid and incompatible with the common market. Similar decisions were handed down in respect of companies in France and Italy.
On foot of the 2005 Decision, the Department recovered from Aughinish Alumina Ltd €10,948,601 in respect of the period 2 February 2002 to 31 December 2003 and a further €3,607,986 in respect of the 2007 Decision for the period 1 January 2004 to 31 October 2007. Accordingly, on foot of both decisions, Ireland recovered a total of €14,556,587 from Aughinish. Over time, these decisions have been subject to a series of appeals resulting in the return and recovery of the state aid on a number of occasions.
In December 2017, the European Court rejected on all grounds the most recent appeal against the Commission decision of 2005. As a consequence, the finding of the General Court stands and the exemption for mineral oils constitutes State aid. Following the judgement in respect of the 2005 decision, the General Court invited the parties to submit observations as to the consequences of the Court order for the 2007 decision. Counsel for the State was of the view that not all of the pleas in respect of the 2007 case have been dealt with by the 2005 judgement. Accordingly, the Court was asked to examine two outstanding pleas and the hearing took place on 2 April 2019. On 17 September 2019 the Court dismissed both pleas. Accordingly Ireland fully implemented recovery as per the provisions outlined in the above-mentioned Decisions. A total of €15.1 million (including interest) has been recovered from Aughinish in respect of the EU Commission Decisions of December 2005 and February 2007. The Commission was notified of the recovery and as per letter dated 20 March 2020 confirmed that the case would be closed.
419. Deputy Richard Bruton asked the Minister for Finance the amount that a worker can put into a pension savings plan with relief from income tax; the amount which their employer can put in on their behalf with relief from tax on business income; and if this varies with different types of pension plan. [44203/22]
Amharc ar fhreagraTax relief for employees may be granted for: contributions to an “exempt approved” occupational pension scheme under section 774 Taxes Consolidation Act 1997 (TCA); contributions to a statutory scheme under section 776 TCA; contributions to a retirement annuity under section 784 TCA; contributions to a Personal Retirement Savings Account (PRSA) under section 787C TCA; and for contributions to a qualifying overseas pension plan under section 787N TCA.
For individuals, the relief is granted at the marginal rate of income tax. The amount of contributions on which relief can be granted in a tax year is limited to an age-related percentage of the individual’s earnings, ranging from 15% for employees aged under 30 years to 40% for employees aged 60 years and over, and subject to an overall annual earnings cap of €115,000. The age-related percentage limits are set out below.
|
Up to age 30 |
15% of remuneration |
|
30 to 39 |
20% |
|
40 to 49 |
25% |
|
50 to 54 |
30% |
|
55 to 59 |
35% |
|
60 and over |
40% |
For example, where an individual aged under 30 has earnings of €50,000, the maximum tax-relieved amount that person can contribute to an occupational scheme in a tax year is €7,500 (€50,000 x 15%). The maximum tax relieved amount for any employee in a tax year is €46,000 (€115,000 x 40%) where the employee is aged 60 or over and has earnings equal to or greater than the earnings cap of €115,000.
Employee contributions in excess of the maximum tax-relieved amount can be treated as contributions for the previous year (if the individual did not fully utilise his or her tax relieved amount in that year) if the contribution is made before the return filing date for that year. For example, if an employee’s maximum tax relieved contribution in 2022 is €7,500, but he or she makes contributions of €10,000, the excess over €7,500 can be treated as a contribution for 2021 if it is made before the filing date for the 2021 tax return, which is 31 October 2022 or later if the return is filed through Revenue’s Online Service (ROS). Any unrelieved balance can be carried forward to claim relief in a future year.
Where an individual has two or more sources of income (for example, earnings from employment and profits from self-employment) and is making pension contributions to more than one pension product (for example, an occupational pension scheme and to an RAC/PRSA), the single aggregate earnings limit of €115,000 applies in determining the amount of tax relievable contributions.
There is no relief from either PRSI or the USC for pension contributions.
Employers get full tax deductibility against their profits for pension contributions on behalf of their employees, and this applies to all pension types. There is no upper limit on tax relief for employer contributions. However, occupational pension schemes are subject to a requirement that aggregate contributions to such schemes must not produce a fund that exceeds the amount that will provide a maximum pension on retirement to any scheme member of more than two-thirds of his/her final salary. In addition, an individual’s overall pension savings (including any employer contributions and including the individual’s aggregate pension savings in all products) is subject to an overall tax relieved limit, known as the Standard Fund Threshold (SFT), which is currently €2 million. I am advised that further guidance on employer contributions to occupational pension schemes is set out in Chapter 4 (Contributions by Employers) of the Revenue Pensions Manual.
Employer contributions to an occupational pension scheme are not treated as a taxable Benefit in Kind (BiK) and therefore do not give rise to a tax charge for the employee.
Employee contributions to PRSAs are treated the same as contributions to occupational pension schemes – tax relief is available subject to the age-related percentage of earnings and overall earnings cap. However, employer contributions to a PRSA on behalf of an employee are treated as a BiK of the employee, and only qualify for tax relief for the employee where the total of the employer and employee contributions for the year does not exceed the relevant age and earnings related limits of the employee. PRSAs are also subject to the Standard Fund Threshold of €2 million. Further guidance on employer contributions to PRSAs is set out in Chapter 24 of the aforementioned Revenue Pensions Manual.
420. Deputy Richard Bruton asked the Minister for Finance the current status of the age exemption limit in the income tax code; and if he will make a statement on the matter. [44204/22]
Amharc ar fhreagraThe tax code provides for a number of tax credits and reliefs for those aged 65 and over.
The current age exemptions limits mean that single, widowed or surviving civil partners aged 65 or older do not pay any income tax if they earn less than €18,000 per annum with a threshold of €36,000 in place for a married couple or civil partners where one person is 65 years of age or older. The relevant income thresholds may be increased further if the individual has a qualifying child. The thresholds are increased by €575 in respect of both the first and second child, and €830 in respect of each subsequent child.
Marginal relief may be available where the individual’s or couple’s income exceeds the relevant exemption limit but is less than twice that amount. Where marginal relief applies, the individual or couple is taxed at 40% on all income above the exemption limit to a ceiling of twice the exemption limit. Once the income exceeds twice the exemption limit marginal relief is no longer available and the individual pays tax under the normal tax system. It should be noted, however, that where the individual’s income is greater than the exemption limit but below twice that limit, the taxpayer is always given the benefit of the more favourable treatment as between the use of marginal relief or the normal tax system of credits and bands.
Persons aged 65 or over may also avail of the age tax credit, which currently amounts to €245 per year for single persons or €490 per year for married couples or civil partners. Reduced rates of USC also apply for persons aged 70 or older where their total income is €60,000 or less.
As such, the current tax arrangements for persons aged 65 or older compare favourably with the tax treatment of the generality of taxpayers.
Additional guidance on the range of tax credits and reliefs that may be available for individuals over 65 years of age can be found in Tax and Duty Manual Part 15-01-26, which can be located at the following link – Tax and Duty Manual: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-26.pdf.
The general position is that all tax expenditures and reliefs, including the age exemption limit, fall to be considered as part of the annual Budget and Finance Bill process. However, it is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters that might be the subject of Budget decisions.
421. Deputy Seán Haughey asked the Minister for Finance if he will waive the €30 stamp duty that has been imposed on customers of banks (details supplied) who must close their accounts and move to another provider particularly in circumstances in which the stamp duty is not due to be paid for several months; and if he will make a statement on the matter. [44231/22]
Amharc ar fhreagraI am informed by Revenue that there is no Government charge for closing a credit card account per se.
However, section 124 of the Stamp Duties Consolidation Act 1999 provides for an annual stamp duty at the rate of €30 to be charged on credit card accounts. In that context, I can confirm that the charge under section 124 is applied where a credit card account is maintained with a financial institution at any time during the 12-month period ending on 1 April in any year.
The €30 charge applies to the account and not to the card - the number of cards issued to that account are not relevant. Stamp duty is charged to the account on 1 April each year in arrears unless the account is closed during the year. If the account is closed during a year and the card is cancelled, this will result in the €30 charge to stamp duty being applied on the date of closure.
Where an account is closed and a stamp duty charge is applied, the financial institution should provide the account holder with a letter of closure, provided he or she has paid the €30 charge. In such circumstances, if the account holder opens a new account with another financial institution, he or she will not have to pay a stamp duty charge on the 1 April following the account closure if he or she presents this letter to the new financial institution.
Revenue has published guidance on stamp duty on credit and other financial cards on its website, which is available at Stamp Duty on financial cards (revenue.ie).
I hope this clarifies the matter.
422. Deputy Pearse Doherty asked the Minister for Finance the estimated cost in 2023 of reducing the second rate of USC from 2% to 0.5%, together with increasing the upper band limit for this proposed second rate of USC from €21,295 to €24,133. [44245/22]
Amharc ar fhreagraI am advised by Revenue that the estimated Exchequer costs of reducing the second rate of USC from 2% to 0.5% together with increasing the upper band limit for this proposed second rate of USC from €21,295 to €24,133 are €505 million in 2023 and €580 million in a full year.
423. Deputy Darren O'Rourke asked the Minister for Finance the amount of revenue that was raised by the carbon tax on each of the following in 2021 - natural gas, bags of coal, peat briquettes and home heating oil; and if he will make a statement on the matter. [44286/22]
Amharc ar fhreagraI am advised by Revenue that the receipts collected from the carbon tax in 2021 on natural gas, coal, peat briquettes and home heating oil (Kerosene) are as follows.
|
- |
Carbon Tax Receipts 2021 €m |
|
Natural Gas |
83.3 |
|
Coal |
21.4 |
|
Peat Briquettes |
6.5 |
|
Home Heat Oil (Kerosene) |
83.0 |
424. Deputy Pearse Doherty asked the Minister for Finance the estimated general Government balance for 2022 and 2023, respectively, given the improved revenue intake relative to profile in the recently published August fiscal monitor; and if he will make a statement on the matter. [44291/22]
Amharc ar fhreagraOfficial forecasts for the general government balance are compiled and published by my department twice a year: once in the Stability Programme Update and again as part of the Budget publications.
My officials are currently producing an updated set of economic and fiscal forecasts as part of preparation for Budget 2023. These forecasts will be published in the Budget documentation and will include the estimated general government balance for 2022 and 2023 taking into account the revenue and expenditure movements to date.
In addition to this, the ‘white paper’, which will be published prior to Budget 2023, will include an estimate of the general government balance for this year and next on a no policy change scenario.
425. Deputy Pearse Doherty asked the Minister for Finance if his Department will publish the White Paper estimate of receipts and expenditure in early September 2022 in the interests of budgetary transparency; and if he will make a statement on the matter. [44292/22]
Amharc ar fhreagraIn accordance with the provisions of Article 28 of the Constitution, my Department publishes the ‘White Paper’, the estimates of receipts and expenditure for this year and next in a 'no policy change' scenario, in advance of the Budget each year.
In order to ensure that the latest macroeconomic and fiscal data are incorporated into the estimates the practice has been to publish the White Paper on the Friday before the Budget. This helps ensure that differences between the White Paper estimates and the Budget 2023 projections are, in general, only due to Budget decisions, which enhances the transparency of the budgetary process.
My department will continue this practice this year with the publication of the White Paper on Friday September 23rd.
426. Deputy Pearse Doherty asked the Minister for Finance the funding allocated towards economic crime and financial fraud in each of the years from 2014 to 2021 and to date in 2022; and if he will make a statement on the matter. [44293/22]
Amharc ar fhreagraAs the Deputy will be aware, there are a number of different State agencies involved in fighting economic crime and financial fraud, including An Garda Síochána and the Corporate Enforcement Authority. Of the bodies under the aegis of my Department, the Central Bank of Ireland, as regulator of the financial services industry, has a role in this regard.
While it is the mandate of the Central Bank to safeguard monetary and financial stability and to work to ensure that the financial system operates in the best interests of consumers and the wider economy, the Bank advises me that it is not in a position to share details regarding its funding allocated specifically towards economic crime and financial fraud.
427. Deputy Pearse Doherty asked the Minister for Finance the estimated cost in 2023 of not increasing the rate of carbon tax on 12 October 2022, 1 May 2023 and 12 October 2023, relative to the revenue baseline for 2023 implicit in the summer economic statement. [44294/22]
Amharc ar fhreagra428. Deputy Pearse Doherty asked the Minister for Finance the estimated cost in 2023 of not increasing the rate of carbon tax applied to petrol, diesel and home heating oil on 12 October 2022, 1 May 2023 and 12 October 2023, relative to the revenue baseline implicit in the summer economic statement. [44295/22]
Amharc ar fhreagraI propose to take Questions Nos. 427 and 428 together.
I am advised by Revenue that the cost in 2023 of not increasing the rate of carbon tax on 12 October 2022, 1 May 2023 and 12 October 2023 is estimated at €124.6m, with an additional €11.7m in VAT.
In relation to Question No. 428, I am advised by Revenue that the cost in 2023 of not increasing the rate of carbon tax applied to petrol, diesel and home heating oil on 12 October 2022, 1 May 2023 and 12 October 2023 is estimated at €99.7m, with an additional €9.9m in VAT.
